Skip to main content
Find a Lawyer

Utah Code Title 3. Uniform Agricultural Cooperative Association Act § 3-1-45. Sale, mortgage, and lease of assets

Current as of January 01, 2025 | Updated by Findlaw Staff

(1)(a) The association may sell, lease, exchange, mortgage, pledge, dispose of, or repay a debt with any of the property and assets of an association, if this action is made in the usual and regular course of business of the association.

(b) The action taken under Subsection (1)(a) may be made upon the terms and conditions and for consideration as are authorized by the board of directors.

(2) Consideration may include money or property, real or personal, including shares of any other association or corporation, domestic or foreign, as is authorized by the association's board of directors.

(3) If the articles of incorporation provide for the mortgage or pledge of the property of the association by its directors, then the mortgage or pledge of all, or substantially all, of the property or assets, with or without the good will of an association, is considered to be made in the usual and regular course of its business.

(4) If the action taken under Subsection (1) is not made in the usual regular course of the association's business, the action may still be taken if the following requirements are complied with:

(a) The board of directors shall adopt a resolution recommending the action, and the members shall vote at an annual or special meeting of members.

(b) Written or printed notice of the meeting shall be given to each member entitled to vote as provided in this chapter.

(c)(i) At the meeting in which the action is considered, the members may authorize the action described in Subsection (1) and set the terms, or may authorize the board of directors to set the terms, conditions, and consideration to be received by the association.

(ii) A two-thirds majority vote of the members is required to approve the action specified in Subsection (1).

(d) The board of directors may abandon the action, even if approved by the members, subject to the rights of third parties under any related contracts, without further action or approval by members.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Utah Code Title 3. Uniform Agricultural Cooperative Association Act § 3-1-45. Sale, mortgage, and lease of assets - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-3-uniform-agricultural-cooperative-association-act/ut-code-sect-3-1-45/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard